Purchase order finance in South Africa.
You’ve landed a confirmed purchase order from a creditworthy buyer but can’t fund the materials and labour to fulfil it. The lender pays your suppliers directly, you deliver, the buyer pays on the agreed terms, and the lender settles out of that payment minus their fee. Fulfilment risk sits with you; credit risk sits with the buyer.
Is purchase order finance a fit?
Green flags
- The purchase order is signed, with a creditworthy off-taker (corporate, government department, listed buyer).
- Gross margin on the order comfortably absorbs the PO finance fee (typically 3–8% per month).
- You’ve delivered orders of similar scale before — lenders price heavily on fulfilment track record.
Red flags
- The buyer’s payment terms are vague or stretch past 90 days — PO finance costs can consume the profit.
- The order requires new capability (new machine, new staff) you haven’t actually built — fulfilment risk is too high.
- You’re relying on stacking multiple POs through the same financier without clearing prior advances.
No lender on Frank’s panel offers purchase order finance yet.
This page explains how purchase order finance works so you can recognise a good offer when you see one. The questionnaire checks your business against every lender on the panel and shows which funding types it can actually get.
Start the questionnaireFAQ
You’ve landed a confirmed purchase order from a creditworthy buyer but can’t fund the materials and labour to fulfil it. The lender pays your suppliers directly, you deliver, the buyer pays on the agreed terms, and the lender settles out of that payment minus their fee. Fulfilment risk sits with you; credit risk sits with the buyer.
It tends to fit when the purchase order is signed, with a creditworthy off-taker (corporate, government department, listed buyer); gross margin on the order comfortably absorbs the PO finance fee (typically 3–8% per month); you’ve delivered orders of similar scale before — lenders price heavily on fulfilment track record.
Speeds vary by lender, from same day to a few weeks. Each lender above shows its typical speed; your own application can move faster or slower depending on the documents you have ready.
Yes, by the time you’re funded. Every lender on Frank’s panel requires the business to be registered in South Africa, but you can register with CIPC while you apply, so Frank still shows you your matches. Each lender also sets its own minimum trading history.
No. You are never charged for using Frank. If you are funded, the lender pays Frank a referral fee. The fee is the same whichever lender you choose, so it never changes the rate or terms you are offered.
No. Frank is not a registered financial services provider and does not give financial advice as defined in the FAIS Act. It explains funding products and introduces you to lenders; any credit agreement is directly between you and the lender.
Other funding types
Check your business
Not sure this is the right fit? Check your business against every lender’s rules.
It takes about a minute and there is no credit check. Frank checks your answers against every lender’s rules and shows you what fits and what does not. When you choose a lender, Frank sends them your application on the answers you have already given.
See my funding options